Mileage Tracking Tips for Your Business

As we approach the end of the year, it’s time to make sure your books are tidy and your tax prep is on track, especially if you’re using a personal vehicle for business. One of the most common deductions for small business owners and self-employed folks is mileage, but only if you’ve kept a good record.

Are You Using Your Personal Vehicle for Business?

If you use your own car or truck to meet clients, run errands, or make deliveries for your business, the IRS allows you to deduct those business miles. But here’s the catch: you must have a mileage log. No log, no deduction. The IRS wants to see when, where, and why you drove each business mile. Guesstimates just won’t cut it.

My Favorite Tool: Mile IQ

I recommend the Mile IQ app for effortless, accurate tracking. It automatically logs your drives, lets you categorize trips as business or personal, and generates neat reports ready for tax time. This is much easier than trying to keep a paper notebook or piecing together your calendar in January.

What If You Have a Business Vehicle?

If your business owns the vehicle (it’s titled in your business name and on the books), you cannot claim mileage. Instead, you need to keep track of all actual expenses like fuel, oil changes, tires, repairs, insurance, and other maintenance. Track these costs until the vehicle is fully depreciated on your taxes. After that, talk with your tax pro to see if anything changes.

Why It Matters Now

Don’t wait until December 31 to try to reconstruct your mileage or receipts. The IRS is strict about documentation. A little diligence now saves a lot of stress (and possibly money) later.

If you have questions about business vehicle deductions, or need help setting up a mileage log or app, give us a call. We’re here to make sure you’re set up for success without the year-end scramble!